1. Customer Satisfaction
2016 Benchmarking
Insights Conference
Boulder, CO
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and find the table for CS Insights, then click on the ”Customer Satisfaction” link.

2. Agenda Overview Coverage of the Study for Customer Satisfaction
2015 Key Findings/ Points of Emphasis
Performance Profiles
JD Power Residential Electric
JD Power Business Electric
2016 Benchmarking Results
Surveys applied
Regulatory/Executive and Other Complaints
Initiatives to Handle Complaints
Areas of Focus and Opportunity

3. Coverage of the 2016 Customer Service Benchmark Study
Field Service
Change of Account
Billing Field Orders (meter investigations)
Credit Field Orders
Order Management
Customer Contact
Contact Center
Local Office
Self Service
Contractors
Credit Inbound calls
Revenue Management
Credit Office and Outbound calls
Credit Field and Inbound Contact Policies
Revenue Protection: Office and Field
Back Office
Billing
Billing Field Policies
Payment Processing
Meter Reading
Manual
Mobile AMR
Fixed Network AMI
CS Support and CS IT
Employees: Safety, Staffing
Customer: Customer Satisfaction, First Contact Resolution, Customer Experience, Key Account Management,
Energy Efficiency , Outage Communications
Areas excluded:
Meter Change-out

4. JD Power Findings

5. J.D. Power Ratings As Reported by JD Power Residential Electric
Overall
Represents Residential Electric Survey for (not 2016, although that survey was completed and just announced July 15, —we will comment on this briefly)
The 2015 Electric Utility Residential Customer Satisfaction Study is based on responses from 102,525 online interviews conducted July 2014 through May among residential customers of 140 electric utility brands across the United States, which collectively represent more than 96 million households
For more information on electric utility ratings, visit JD Power.com
Power Quality And Reliability
Corporate Citizenship
Price
Billing and Payment
Communications
Customer Service
Please note that JDP is not a proxy for your company transactional or internal contact surveys
Source: All score data presented is provided publicly by JD Power and Associates. 5

6. J.D. Power Ratings As Reported by JD Power Business Electric
Overall
Represents Business Electric Survey for (although it is called “2016”)
The 2016 Electric Utility Business Customer Satisfaction Study is based on responses from more 21,000 online interviews with business customers who spend at least $200 monthly on electricity.
The study was fielded from March through June 2015 and July through November
For more information on electric utility ratings, visit JD Power.com
Power Quality And Reliability
Corporate Citizenship
Price
Billing and Payment
Communications
Customer Service
Please note that JDP is not a proxy for your company transactional or internal contact surveys
Source: All score data presented is provided publicly by JD Power and Associates. 6

7. J.D. Power Ratings and Time Periods Covered

8. JD Power 2008-2015 Electric Residential and Business Customer Satisfaction Released

9. Looking Back: JD Power 2015 Residential Customer Satisfaction Released July 15, 2015
Overall satisfaction among electric utility residential customers increased in 2015 to 668 (on a 1000-point scale), up 21 from 647 in 2014, (639 in 2013, 625 in 2012, 628 in 2011, 630 in 2010, 618 in 2009 and 614 in 2008)
Increase driven primarily by increase in communications and in price
“Utility companies are doing a better job at the fundamentals—minimizing service interruptions, communicating with customers and improving customer service. “Proactive communication during power outages remains a challenge”…
The study found that utility companies are providing critical information during a power outage, such as the cause of the outage, the number of customers impacted and more accurate estimates on when power will be restored. However, proactive communications—i.e., when a utility calls, s, or sends a text message—are only reaching 7.3 percent of customers, a slight increase from 5.6 percent in 2014.
Example: Power quality and reliability satisfaction among customers who receive proactive updates during an outage is significantly higher (777) than among those who do not receive such communications (683).
J.D. Power and Associates, Corporate Communications, July 2015

10. Key Points: JDP 2015 Residential Electric Customer Satisfaction (7/2015)
Communications
Communications about a utility company’s infrastructure are among the topics that most resonate with customers.
Communications satisfaction is high among customers who indicate that the topic of the most recent communication from their utility was the reliability of electric delivery.
Satisfaction among customers whose most recent communication concerned electric system upgrades or improvements is also high.
Billing and payment satisfaction is higher among customers who receive bill alerts than among those who do not receive such alerts (765 vs. 706, respectively).
J.D. Power and Associates, Corporate Communications, July 2015

11. Noted Companies 2015 Residential Electric
East: PPL Electric Utilities ranks highest among large utilities in the East region for a fourth consecutive year. PSE&G ranked second, followed by Duquesne Light, Con Edison and BGE
Midwest : MidAmerican Energy ranked highest in the large utility segment in the Midwest region for a seventh consecutive year, followed by We Energies,; DTE Energy; and Alliant Energy, respectively.
South: OG&E ranked highest in the large utility segment in the South region, followed by Georgia Power; Entergy Arkansas; and Alabama Power, respectively.
West: Salt River Project (SRP) ranked highest in the large utility segment in the West region for a seventh consecutive year and received an award in the study for a 13th consecutive year. Following Salt River Project in the segment rankings were SMUD; Portland General Electric; and APS, respectively.
J.D. Power and Associates, Corporate Communications, July 2015

12. Performance Profile- Residential Electric

13. JD Power: Residential Electric Score (2015) 1QC Panel
Q1, Q2, and Q3 scores for companies in our Community improved slightly in 2014
Several companies placed among the top performers for their size and geographic region- Co 22, 38, 26, 28
Quartile
2015
2014
2013
2012
Mean
655
638
641
622
Quartile 1
667
659
656
628
Quartile 2:
646
642
626
Quartile 3:
649
636
629
618
BL Page 2 – BL5

14. The latest: JD Power 2016 Residential Customer Satisfaction Released July 13, 2016
Overall satisfaction improved for the fourth consecutive year, averaging 680, up by 12 points from 668 in 2015 (on a 1000-point scale), It was 647 in 2014 and 639 in ).
However, the industry continued to trail far behind many of the other industries J.D. Power tracked, including auto insurance (averaging 811 in 2016), retail banking (793), and airline (726).[1] In fact, only 11 of the 137 utility brands included the study outperformed the airline industry average.
Average monthly bill: Customer-reported monthly electric bills are the lowest in 10 years, averaging $129 in 2016, down from $132 in Satisfaction in the price factor improved the most, increasing by 16 points from 2015.
Power reliability: The average frequency of brief power interruptions (outages of 5 minutes or less) reported by customers continued to decline since 2010.
Improving the accuracy and the amount of outage information provided to customers is requiring an investment by providers, but it’s one with measurable benefits based on customer feedback
Satisfaction by state: Satisfaction is highest among customers in Georgia, Alabama and Oregon, and lowest in West Virginia, Connecticut and New Hampshire.
J.D. Power and Associates, Corporate Communications, July 2016

15. Key Points: JDP 2016 Residential Electric Customer Satisfaction (7/2016)
Communications
Importance of consistent and proactive communications
The study found that utilities are improving in terms of informing customers about scheduled utility work, with 73% of customers indicating they were notified ahead of time, up from 71% in 2015.
However, only 40% of customers said they were informed about an outage this year, down from 42% in 2015
Power Reliability
41% of customers experienced “perfect power,” or no brief or long interruptions, up from 37% in 2010.
While lengthy interruptions have remained fairly constant, the length of the longest outage has fallen to an average of 6.4 hours in 2016 from 7.0 hours in 2015.
J.D. Power and Associates, Corporate Communications, July 2016

16. Noted Companies 2016 Residential Electric
East: PPL Electric Utilities ranks highest among large utilities in the East region for a fifth consecutive year, with a score of 705. PSE&G (690) ranks second, followed by BGE (680), PECO (675) and Con Edison (672).
Among midsize utilities in the East region, Green Mountain Power ranks highest with a score of 681. Following in the rankings are Met-Ed (672), Delmarva Power and Rochester Gas & Electric in a tie (670 each), and Penn Power (664).
Midwest: American Energy ranks highest in the large utility segment in the Midwest region for a ninth consecutive year, with a score of 713. DTE Energy (703) ranks second, followed by Xcel-Energy Midwest (692) and Alliant Energy and We Energies in a tie (687 each).
Kentucky Utilities ranks highest in the midsize segment in the Midwest region with a score of 712. Following Kentucky Utilities are Otter Tail Power Company (703), Omaha Public Power District (700), Louisville Gas & Electric (696) and Lincoln Electric System (694).
J.D. Power and Associates, Corporate Communications, July 2016

17. Noted Companies 2016 Residential Electric
South: Florida Power & Light (FPL) ranks highest in the large utility segment in the South region with a score of 724. Following in the rankings are Alabama Power (721), Georgia Power (712), OG&E (711) and CPS Energy and Entergy Arkansas in a tie (707 each).
EPB ranks highest in the midsize utility segment in the South region with a score of 737. Following EPB are Entergy Texas (715), Entergy Mississippi (714) and Gulf Power (711)..
West: Salt River Project (SRP) ranks highest in the large utility segment in the West region for a 15th consecutive year, with a score of 730. SMUD (719) ranks second, followed by Portland General Electric (710), Pacific Power (698) and APS (691).
Clark Public Utilities ranks highest in the midsize utility segment in the West region for a ninth consecutive year, with a score of 743. Colorado Springs Utilities ranks second (712), followed by Idaho Power (704) and Imperial Irrigation District and Seattle City Light in a tie (699 each).
J.D. Power and Associates, Corporate Communications, July 2016
J.D. Power and Associates, Corporate Communications, July 2015

18. JD Power 2016 Electric Business Customer Satisfaction Released January, 2016
Business customer satisfaction with their electric utility is up substantially year over year, with significant improvements in communications, corporate citizenship and price satisfaction
Overall satisfaction among electric utility business customers is 704 in 2016, a significant increase from 677 in 2015 and the highest level in eight years.
Performance improvement in 2016 is driven by a sharp year-over-year rise in satisfaction with communications (+55 points), corporate citizenship (+45) and price (+43)
The survey found that “providers are doing a better job of proactively communicating with their business customers not only during an outage, but also on a regular basis to keep them informed of things such as energy programs offered, and to gather customer feedback.”
J.D. Power and Associates, Corporate Communications, January 2016

19. Key Points: JDP 2016 Electric Business Customer Satisfaction (1/2016)
Account Management
Overall satisfaction among businesses with an assigned account manager at their utility is more than 100 points higher than among those that do not have an account manager.
Billing and Payment Alerts
Billing and payment satisfaction averages 708 among the 37% of businesses that indicate they do not receive billing and payment alerts from their utility provider, but satisfaction is 776 when providers send an alert when a bill is due or overdue and jumps to 798 when they send customers confirmation that their payment was received
J.D. Power and Associates, Corporate Communications, January, 2016

20. Key Points: JDP 2016 Electric Business Customer Satisfaction (1/2016)
Problem/Contact Resolution
Regardless of the contact channel, twice as many business customers contact their electric utility provider twice as often as residential customers, yet their rate of problem resolution is lower than residential customers.
48% of business customers contact their provider via telephone, compared with 23% of residential customers; however, the problem resolution rate over the phone is only 67% among businesses, compared with 71% among residential customers.
Awareness of Product and Services Important to Satisfaction:
The more utility products and services customers are aware of, the higher their overall satisfaction.
Overall satisfaction among customers who are aware of 10 or more products and services is 768 and drops to 704 among those who are aware of only four or five. When customers are not aware of any of their provider’s offerings, satisfaction plummets to 603.
J.D. Power and Associates, Corporate Communications, January, 2016

21. Noted Companies 2015 Electric Business
The following utilities rank in the top 3 in business customer satisfaction in their respective regions:
East Large: Con Edison, PPL, PSE&G
East Midsize: Met-Ed, Pepco, Delmarva Power
Midwest Large: Ameren Missouri, KCP&L, DTE
Midwest Midsize: Omaha Public Power District, Kentucky Utilities, IP&L
South Large: Entergy Arkansas, Alabama Power, FP&L
South Midsize: JEA, NES, Orlando Utilities Commission
West Large: SRP, Rocky Mountain Power, Puget Sound
West Midsize: SMUD, Seattle City Light, Avista
J.D. Power and Associates, Corporate Communications, January 2016

22. JD Power: Business Electric Score (2016) 1QC Panel
Our Panel Performance improved over 2015 Reporting
A number of very good performers ranking highly in their respective regional and size groupings
Quartile
2015
2014
2013
2012
Mean
693
670
653
655
Quartile 1
710
659
665
Quartile 2:
700
664
639
652
Quartile 3:
681
635
642
CS Page 2 – CS5

23. Survey approaches

24. PROVIDER OF CUSTOMER SATISFACTION RESEARCH: PRIMARY
Most companies are relying on transactional and 3rd party surveys for primary research rather than larger customer satisfaction research providers
Total Respondents 29
JD Power
20.69%
ACSI 0%
MSI
41.38%
Other
62.07%
Legends 20 21 22 23 25 26 27 28 29 30 31 32 33 34 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
JD Power ♦
ACSI
MSI
Other
CS Page 7 – CS10

25. “OTHER” PROVIDERS OF CUSTOMER SATISFACTION RESEARCH
A broader range of 3rd party surveyors ID
Response 22
We conduct several relationship and transactional customer satisfaction studies. Other suppliers include Opinion Dynamics Corp, Blackstone Group, WBA Research, and ForeSee Results. This
excludes studies that measure satisfaction with energy efficiency and demand response programs. 29
Use 3rd party firm selected through competitive bid process. Metrix Matrix. 20
ESource, APPA and Chartwell 36
WB&A - government officials survey. Foresee - website satisfaction 31
Bellomy Research 42
DABI-Internal 21
Other outside vendors for transactional studies, ad hoc research and online panel 34
Fielded by a third party and analyzed internally on both satisfaction and transactional surveys. 32
IPSOS, Internal Studies 40
We use a company named ERC BPO to conduct our transaction research. 50 28 47
Cogent/MarketStrategies -- Utility trusted brand & customer Engagement Residential and commercial Third Party Vendor Transactional Call Center Customer Sat (CS Index)
CS Page 9– CS11

26. MEASURING OVERALL CUSTOMER SATISFACTION: TYPES OF SURVEYS [TRANSACTIONAL, RANDOM, ALL CUSTOMERS]
50%, 14 of 28 companies companies in the survey, are now doing some type of transactional surveying (measuring the actual interaction with the customer), a similar % to what was reported last year…
Nearly all report using outbound calls for the transactional survey, while calls and are predominant for random surveys
CS Page 6– CS7

27. USING CUSTOMER SATISFACTION RESULTS TO DRIVE OPERATIONAL PLANNING FROM YEAR TO YEARID
Response 22
Survey results are used to provide direction on areas to focus improvement and to validate progress in implementing initiatives to enhance the customer experience. Specific business planning initiatives are developed to drive customer sat improvements. As one example, training requirements are developed and rolled out to customer service reps as part of their training. Targets for customer satisfaction are set each year with goals tied to compensation. 43
Both Perception & Transactional Studies are part of Company Annual Incentive Program as well as specific Customer Satisfaction Initiatives 29
Used as corporate and division key success indicator (KSI). 31
Results are monitored by each operating company and various functional groups (Contact Centers, etc.) to identify areas of strength and also those that require focus and/or development and implementation of improvement initiatives. 42
These are utlitzed withing our 5 year vision plan as well as our monthly operation. 44
Central to budgeting and work planning. Executive & Operating 'Customer One' committees develop, prioritize and execute program and process improvement initiatives driven by voice of the customer analytics and industry best practices. 21
Our company has a robust and structured approach to customer satisfaction improvement which it has used since Each year we choose key areas of focus to improve customer satisfaction based on the key drivers of satisfaction, performance trends in all customer satisfaction measures and benchmark performance. In order to maintain focus on customer satisfaction, monthly customer results and key initiatives are reviewed in monthly meetings of our Customer Experience Working Group. The Working Group includes key directors and managers from across company. We also hold quarterly meetings with the Customer Perception Steering Committee which includes the company President and his Senior Leadership Team 34
Customer Satisfaction is a Company STI: Customer satisfaction is among the areas targeted in our Business Plan. A customer satisfaction index is measured for three customer segments --residential, small and medium commercial and large commercial and key accounts
30, 49, 41
tracked as KPI, used for first and second tier goals, review key drivers to target improvements 32
Gaps to the top performer in the J.D. Power study are analyzed by key driver to help drive corporate priorities.
40, 50, 28
A detailed review of the results is conducted at the end of the year, and the findings from the review are used to address specific business areas in the up coming year. 51
CS Index is part of the corporate KPIs measured yearly. CS Index tracking is monthly; results are used to influence and manage rep staffing, customer wait times, IVR technology, call routing 38
Representative (Contact Center Survey). The CS Index represents a calculation based on 7 attribute ratings by customers who provide a favorable rating (9 or 10) of their experience regarding these attributes

28. RANKING OF SUCCESSFUL INITIATIVES FOR IMPROVING CUSTOMER SATISFACTION
Please rank initiatives that have been successful in improving customer satisfaction [including how complaints are addressed or how you seek to prevent formal/regulatory complaints]
Top 3 Selected
Tackling and addressing specific complaint areas
Increased communication with customers
Other
improving the outage experience for our customers
reinforcing the value of our products;
being a company that is easy to do business with
technology enhancements (self service

29. Complaints Handling

30. Mean is down slightly from prior year
COMPLAINTS PER 100,000 CUSTOMERS: TOTAL (Using Formal Internal Methods)
Mean is down slightly from prior year
5 companies had elevated levels of complaints reported
2015
2014
2013
2012
Mean
422
606
673
497
Quartile 1
157
148 94 72
Quartile 2:
285
254
181
159
Quartile 3:
571
840
1190
832
Mean
702
Quartile 1
157
Quartile 2:
334
Quartile 3:
619
CS Page 33 – CS55

31. COMPLAINTS PER 100,000 CUSTOMERS: CUSTOMER SERVICE (Using Formal Internal Methods)
Credit-related comprise 2/3 of the complaints (mean), with most being Regulatory
Non-Credit Related
Mean
171
Quartile 1 59
Quartile 2: 82
Quartile 3:
217
Mean
225
Quartile 1 37
Quartile 2:
126
Quartile 3:
335
CS Page 29 – CS55
CS Page 30 – CS55

32. Tree Trimming-Related represent ¼ of Distribution Complaints
COMPLAINTS PER 100,000 CUSTOMERS: Distribution (Using Formal Internal Methods)
Tree Trimming-Related represent ¼ of Distribution Complaints
Distribution Other
Mean 34
Quartile 1 17
Quartile 2: 26
Quartile 3: 38
Mean 3
Quartile 1 1
Quartile 2: 2
Quartile 3:
CS Page 31 – CS55
CS Page 32 – CS55
Co. 36 removed as outlier for this chart

33. TOP INITIATIVES UNDERTAKEN RECENTLY TO ADDRESS COMPLAINTS
Total Respondents 17
Collaboration between departments to address complaints 34
Complaint tracking system 12
Escalated complaint handling 13
Complaint performance measures
Complaint assessment and addressing process 11
Customer communications improvement 14
Other 4
Calculation used
CS60.1 , CS60.2 , CS60.3 , CS60.4 , CS60.5 , CS60.6 , CS60.7
Legends 21 22 23 28 29 30 32 33 34 35 40 41 42 43 49 50 51
Collaboration between departments to address complaints 2 1 3
Complaint tracking system
Escalated complaint handling
Complaint performance measures
Complaint assessment and addressing process
Customer communications improvement
Other
Calculation used
CS61.1 ID
Response 21
More rigorous root cause assessment and process improvement tracking 49
Enhanced energy assistance outreach.

34. Thank You for Your Input and Participation!
Your Presenters
Ken Buckstaff
Debi Cook
Gene Dimitrov
Rob Earle
About 1QC
First Quartile Consulting is a utility-focused consultancy providing a full range of consulting services including continuous process improvement, change management, benchmarking and more. You can count on a proven process that assesses and optimizes your resources, processes, leadership management and technology to align your business needs with your customer’s needs.
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